Hollinger 

pH 8.5 

Mill Run F03-2245 



HB 171 
.5 
.C7 
Copy 1 



©nlUgp of tljp (fitly nf £Jrm $nrk 
©eatljprH SxtPWBtan (Enurars 



OUTLINES 



OF LECTURES ON 



ECONOMICS 



BY 



WALTER E. CLARK 

HEAD OF THE DEPARTMENT OF POLITICAL SCIENCE, 
THE COLLEGE OF THE CITY OF NEW YORK 



NEW YORK 
1916 






Copyright, 1916, 

BY 

Walter E. Clark. 



CI. A 453904 



FEB -2 191/ 



HJB/7/ 
.s 



=7 



ECONOMICS 



TABLE OF CONTENTS 



SUBJECT 



I. The Business Life: An Important Factor in History. 4 

II. Fundamental Notions in Economics 4 

III. Consumption of Wealth 6 

IV. Production of Wealth 7 

V. Labor: A Factor of Production 9 

VI. Immigration to the United States : History and Ad- 
vantages 10 

VII. Immigration to the United States: Disadvantages and 

Legislation 11 

VIII. The Factory System and Factory Legislation 13 

IX. Labor Organizations 14 

X. Capital : A Factor of Production 16 

XL Corporations and Their Securities 17 

XII. Trusts in the United States : Origin and Price Effects 18 

XIII. Trusts in the United States: Evils and Remedies 19 

XIV. The Evolution and the Uses of Money 21 

XV. Money Value and Coined Money 22 

XVI. Paper Money 23 

XVII. Bimetallism 24 

XVIII. Credit and Banking 24 

XIX. Outline History of Banking in the United States 25 

XX. The Federal Reserve System 26 

XXI. Rising Prices: Principles, Facts and Supply Causes.. 27 

XXII. Rising Prices: Demand Causes, Effects and Remedies. 27 

XXIII. Principles of International Trade 28 

XXIV. Tariff History of the United States 29 

XXV. Free Trade versus Protection 30 

XXVI. Railways in the United States 31 

XXVII. Distribution of Wealth 34 

XXVIII. Rent of Land 35 

XXIX. Socialism 36 

XXX. Taxation 37 

XXXI. The Development of Economic Thought 40 

GENERAL READING REFERENCES. 

Students in this course are advised to secure one or more of the fol- 
lowing general text books, which will give them supplementary reading : 

1. Ely, R. T., Outline of Economics (1908). 

2. Fetter, F. A., Economic Principles (1915) and Modern Economic 

Problems (1916). 

3. Marshall, Wright and Field, Material for the Study of Elementary 

Economics (1913). 

4. Seager, H. R., Principles of Economics (1913). 

5. Seligman, E. R. A., Principles of Economics (Sixth Edition, 1914). 

6. Taussig. F. W., Principles of Economics (1911). 

Special topical reference lists are given in the body of the Syllabus at 
the close of the treatment of each topic. In such lists the titles marked 
with an asterisk are especially recommended. 



ECONOMICS 



LECTURE I. THE BUSINESS LIFE— AN IMPORTANT 
FACTOR IN HISTORY 

The economic interpretation of history affirms that the way in which 
men get their livelihood largely determines their whole social evolution. 
The validity of this claim may be illustrated by considering: 

I. The effects upon society of land forms and resources, climate, 
and water supply. 

II. The evolution of social institutions as affected by: 

1. The domestication of animals. 

2. The cultivation of grains. 

3. The working of metals. 

III. The economics of : 

1. The Crusades. 

2. The Medieval City Leagues of Europe. 

3. The French Revolution. 

4. The American Revolution. 

5. The American Civil War. 

6. The present era of transition from the old military age to the 

new, peaceful age of industry. 

References for Reading: 

Buckle, Henry Thomas, History of Civilization in England, Chapter II. 
*Jenks, Edward, A History of Politics (1900). 

Marshall, Alfred, Principles of Economics, Chapters II and III. 

Rogers, Thorold, The Economic Interpretation of History (1889). 

Seligman, E. R. A., The Economic Interpretation of History (1907). 
*Semple, E. C, Influences of Geographic Environment (1911). 



LECTURE II. FUNDAMENTAL NOTIONS IN ECONOMICS 

[. Definitions. 

1. Economics. 

Economics is the science which studies the conduct of man, in 
society, as he satisfies his daily wants. The aim of the 
science is to discover and to formulate the laws of man's 
producing and consuming life. 

2. Wealth. 

Goods are useful things, relations and influences. Wealth 
includes all economic goods, i. e., all goods which are lim- 
ited in quantity relative to human need for them. Man's 
powers are not wealth. 



3. Utility. 

Utility is power to satisfy human need. Marginal utility is 
the utility of the last unit in a supply of a series of units. 

4. Value. 

Value is the estimate of utility. Value attaches to economic 
goods only. 

5. Price. 

Value expressed in terms of money is price. Definitions of 
market, market price, normal price, demand, supply and 
stock are necessary to clear reasoning upon prices. 

6. Perfectly Free Competition. 

Perfectly free competition involves the assumption that all 
factors of production are perfectly able and willing to move 
to that place in the industrial system where they can earn 
most. 

II. Methods Used in Economics. 

1. Both the inductive and the deductive methods are used in 

modern economics. 

2. Leading Principles utilised by the deductive method are: 

a. The Principle of Self Interest. 

Self interest, often called the economic motive, dictates 
that in getting his living a man will always seek the 
largest possible return for a given effort. Thr 
the fundamental business life premise. 



us is 



b. The Law of Diminishing Utility. 

(Treated in Lecture III.) 

c. The Law of Diminishing Returns from Land. 

(Treated in Lecture XXVIII.) 

d. The Law of Population. 

(Treated in Lecture V.) 

III. Divisions in Economics. 

For purposes of convenience in study and completeness in 
analysis, the materials of an economic course are usually 
classified under the four heads of Consumption, Production, 
Exchange and Distribution. Some analysts classify these 
same materials under but two heads, Consumption and 
Production. 



References for Reading: 

Cairnes, J. E., The Character and Logical Method of Political Econ- 
omy (1875). 

Marshall, A., Principles of Economics (1898), Book II. 

Seager, H. R., Principles of Economics (1913), Ch. IV. 

Seligman, E. R. A., Principles of Economics (1914), Part I, Chapters 
I and II. 



LECTURE III. CONSUMPTION OF WEALTH 

I. Introduction. 

Human wants, both elemental and social, stimulate and direct 
production. Because of this fact, modern economic analysis 
treats consumption of wealth before it treats its production. 

Human satisfaction, through wealth, is the ultimate economic 
goal. 



II. Definition and Classification. 

Broadly defined, Consumption is the process in the course of 
which utilities are destroyed. It has two leading divisions: 

1. Destructive Consumption. 

Utilities disappear without benefit to human beings, e. g., 
floods, fires, blights, natural decay. 

2. Economic Consumption. 

Utilities disappear with benefit to human beings. This benefit 
may be : 

a. Indirect. 

Many utilities disappear as such, reappearing in higher 
forms, e. g., wool reappears as cloth. 

b. Direct. 

Consumption goods in the hands of the final consumer 
lose their utilities in the process of giving direct 
satisfaction to the consumer. The circle of eco- 
nomic life is completed, when goods are thus con- 
sumed, whether the final consumer be a person of 
leisure or a person of labor. 



III. The Law of Diminishing Utility. 

1. Statement. 

Recurring satisfactions of like kind, and within a given time, 
bring less and less of pleasure up to the point of satiety. 

2. Illustration. 

Conceive a thirsty person to be supplied with a series of 
glasses of water, or a hungry person to be supplied with 



a series of slices of bread, and the operation of the law 
will appear. 

3. Importance. 

This is the economic principle operative in all consumption. 
It is basic to an understanding of value and of prices, as 
explained in modern marginal utility theories. 



IV. Engels' Law. 



1. From a study of Saxon workmen's family budgets Engels 

concluded : 

a. As incomes rise the proportion expended for food 
decreases. 

b. As incomes rise the proportion expended for clothing, 
shelter, fuel and light remains nearly constant. 

c. As incomes rise the proportion expended for health, 
recreation and education increases. 

2. Corollaries of this law are : 

a. "The curse of the poor is their poverty." 

b. There is Social Economy in high wages. 

c. There is Social Economy in general systems of free 

education, free recreations, free medical care, etc. 



V. Conclusion. 

The luxuries of one age become the necessities of the next. 
The material progress of the world is registered in this con- 
stantly rising standard for wealth consumption. High stimu- 
lus to that persistent effort which induces individual and 
social growth comes from the desire to secure a higher 
consumption standard. 

References for Reading: 

Clark, J. B., Philosophy of Wealth (1886). 
More, Louise Bolard, Wage Earners' Budgets (1907). 
Patten, S. N., The Consumption of Wealth (1889). 
Patten, S. N., Theory of Prosperity (1902). 
Patten, S. N., The New Basis of Civilisation (1907). 

LECTURE IV. PRODUCTION OF WEALTH 

I. Definition. 

Production is the creation of form, place, time and possession 
utilities. 

II. Forms of Production. 

Productive activity takes many forms from hunting, through 
the extractive industries, agriculture, mining and fishing, up 
to transportation, manufacture and exchange. Even the pre- 
vention of waste or of decreased production as by police, 
firemen, clergymen, etc., should be listed as productive. 



8 

III. The Conditions of Production. 

Nature and labor are factors indispensable to any production. 
Capital and social organization are indispensable to produc- 
tion on the modern scale. 



1. Nature. 



a. Location, topography, climate and extent of territory all 
affect a nation's productiveness. 

b. Nature supplies the materials which producers use. In 
any given case, these materials are important according 
to their abundance, distribution, availability, durability 
and the range of needs they can satisfy. 

c. Nature supplies also forces of winds and waters, and 

electricity, of adhesion and cohesion, some organic and 
some inorganic, some spontaneous, some humanly de- 
veloped. These forces are important for reasons 
similar to those given as to the materials, with addition 
of their degrees of power and their stability and 
regularity. 



2. Labor. 

(Treated in Lecture IV.) 

3. Capital. 

(Treated in Lecture X.) 

4. Social Organization. 

a. Society is necessary to large production. In society the 
individual is stimulated to do his best and in it, only 
does high division of labor become possible. 

b. Society inherits scientific truth such as that found in 
the sciences of chemistry, geology, engineering and 
stock breeding, which contributes largely to modern 
production. 

c. The State contributes to production by preserving 
peace and order, insuring property rights and adjudi- 
cating conflicts of wills. The slightest insecurity in 
these matters paralyzes industry, as is evidenced by 
conditions in many Central and South American re- 
publics. 

d. There is a growing range of productive activities which 
the State can carry on directly, such as postal service, 
forestration, irrigation, etc. 



IV. Conclusion. 

Nature is being highly enlisted in productive service, capital is 
daily bodying forth in new inventions, labor is growing more 
intelligent and better organized, and society and the State 
are perfecting in their productive powers. 

References for Reading : 

Bullock, Chas. J., Introduction to the Study of Economics, Chapters 
V and VI (1908). 

Marshall, A., Principles of Economics, Book IV, Chapters I to Vll 
( 1 898 ^ 

Seager, Henry R., Principles of Economics, Chapters VIII to XI 

Seligman, E. R. A., Principles of Economics (1914) Chapters XVIII 
and XX. 

LECTURE V. LABOR: A FACTOR IN PRODUCTION* 

I. Introduction. 

The Malthusian principle of population aims to formulate the 
dependence of population upon food supply. The labor force 
of any nation is proportioned to its population, and is there- 
fore subject to the modernized Malthusian Law. 

Labor, defined as human effort in production of economic 
goods, is a necessary factor to any production. Its effective- 
ness is dependent upon its quantity, its quality, and its division. 

II. Quantity of Labor. 

Other things equal, the production of a community varies 
directly as the quantity of its labor force. This quantity is 
dependent upon : 

1. Size of population. 

2. Mode of population growth. 

a. Native increase. 

b. Immigration or Emigration. 

3. Sex of population. 

4. Number of idlers and defectives. 

5. Daily working hours and number of holidays. 

III. Quality of Labor. 

Other things equal, the production of a community varies 
directly as the quality of its labor force. This quality is 
dependent upon : 

1. Native strength and enterprise of workers. 

2. Native and acquired intelligence of workers. 

3. Moral character of workers. 

4. Relation of workers to their product. 

5. Political status of workers. 

IV. Division of Labor. 

Other things equal, the production of a community varies directly 
as the division of its labor force. 
♦References for Reading for Lectures V, VIII and IX follow Lec- 
ture IX. 



10 



1. Advantages of Divisions of Labor: 

a. Develops dexterity. 

b. Utilizes abilities. 

c. Economizes time and capital goods. 

d. Saves interest and insurance. 

e. Stimulates invention. 

/. Shortens apprenticeship. 

2. Disadvantages of Division of Labor : 

a. Monotonous and narrowing to workers. 

b. No joy in completed product. 

c. Strikes more effective. 

3. Limitations of Division of Labor: 

a. The breadth of the market. 

b. The nature of the business. 



V. Conclusion. 



The productive efficiency of the world's labor force is steadily 
growing, for its quantity is increasing, its quality rising, and 
its division perfecting. 



LECTURE VI. IMMIGRATION TO THE UNITED STATES: 
HISTORY AND ADVANTAGES* 

I. Causes. 

1. General. 

a. Pressure of old world populations. 

b. Love of adventure. 

2. Religious. 

Pilgrims, Quakers, Jews, and Armenians. 



3. Political. 



a. Revolutionists. 

b. Evading military service. 

c. Governments have aided paupers and criminals to come. 

d. Private societies aid undesirables to come. 

4. Economic. 

a. Poverty abroad. 

b. Prosperity here. 

The tide of immigration varies directly as business 
prosperity here. 

c. Steamship company solicitation and cheap passage. 

d. Aid from friends or from relatives. 

♦References for Reading for Lectures VI and VII follow Lec- 
ture VII. 



11 

II. Quantity. 

1. From 1789 to 1820 it is estimated that only 250,000 immigrants 

came, yet the population more than doubled. 

2. From 1820 to 1870 nearly 7,000,000 immigrants came. 

3. From 1870 to 1914 over 25,000,000 immigrants came, over 1,- 

300,000 coming in the year 1914 alone. 

4. Since the outbreak of the world war, in 1914, yearly immigra- 

tion has dropped to about one-third of the average annual 
immigration for the decade before 1914. After the war 
ends, immigration, after a possibly large increase for a few 
months, is likely to remain permanently relatively low in 
volume. 

III. Quality. 

1. There is high proportion of adults and of males. 

2. There is large proportion of unskilled laborers. 

3. Up to 1870 the immigrants came largely from North and West 

Europe, and were readily assimilated. In 1870 only one per 
cent, of the immigration came from Italy, Austro-Hungary, 
and Russia. 

4. Since 1870 the immigrants have come largely from South and 

East Europe, having alien traditions and tongues, and being 
more difficult to assimilate. Since 1900, 65 per cent, of all 
immigrants have come from Italy, Austro-Hungary, and 
Russia. In 1907 nearly 900,000 immigrants came from these 
three countries alone. 

5. During this world war the percentage of immigration from 

South and East Europe has fallen notably. During the 
year ending June 30, 1916, less than 17 per cent, of the total 
number of new immigrants came from Italy, Austro- 
Hungary and Russia. 

IV. Advantages. 

1. Better life chance for the immigrants. 

2. Political. 

Military strength of the nation increased. 85 per cent, of im- 
migrants before 1860 had settled in the Northern States and 
helped to sustain the Union. 

3. Economic. 

The productivity of the nation largely increased. About 85 
per cent, of present immigrants are between the ages of 
15 and 45 

At an estimate of $1,000 value to the nation of each immigrant, 
the immigration of 1914 was worth more than $1,300,000,000. 

4. Social. 

It is argued that the mixture of races develops the best nation. 

LECTURE VII. IMMIGRATION TO THE UNITED STATES: 
DISADVANTAGES AND LEGISLATION 

I. Disadvantages. 

1. Political. 

Immigrant masses furnish material for corrupting bosses and 
render successful democracy more difficult. 



12 

2. Economic. 

Immigrants with lower standards of living tend to displace 
native born Americans, to lower wages, to impair the de- 
velopment of labor unions, and to embitter labor struggles. 

3. Social. 

Immigrants and their children yield a disproportion of illiter- 
ates, diseased, insane, paupers and criminals. They tend to 
congest in large cities and to complicate our already difficult 
urban problems. 

II. Right to Legislate. 

1. An incident of sovereignty in International Law. 

2. Constitutionally given to Congress in the United States. 

III. Legislation Favoring Immigration. 

Prior to 1868 all immigration legislation, State and Federal, 
was aimed to benefit the immigrants and to induce immigra- 
tion. 

IV. Legislation Restricting Immigration. 

Since 1868 immigration legislation has been steadily increasing 
its restrictions. The law of 1907 is the most restrictive ever 
passed. If rigidly enforced, all applicants for admission 
who are physically, mentally, or morally defective will be 
rejected. 

V. Future Legislation, 

Future laws will probably increase restrictions. Leading plans 
to increase restrictions suggest the adoption of : 

1. An illiteracy test. 

2. An army standard as to physique. 

3. A largely increased head tax. 

4. Consular inspection. 

5. Closing to immigrants of certain entry ports, such as New 

York and Boston. 

6. Percentage limitation by nationalities. 

7. Total exclusion of immigrant laborers, at least for a period 

of years. 

References for Reading: 

Commons, John R., Races and Immigrants in America (1907). 

Fairchild, H. P., Immigration (1913). 
*Hall, Prescott F., Immigration (1907). 

Hamilton, W. H., Current Economic Problems (1915) pp. 463 to 515. 

Hourwich, T. A., Immigration and Labor (1912). 
*Jenks and Lauck, The Immigration Problem (1913). 

Mayo-Smith, Richmond, Emigration and Immigration (1892). 

Steiner, Edward A., On the Trail of the Immigrant (1906). 

Warne, F. J., The Immigrant Invasion (1913). 

Whelpley, James D., The Problem of the Immigrant (1905). 

Report of the Industrial Commission, Volumes XV and XIX. 

Annual Reports, U. S. Commissioner General of Immigration. 

Report, Commission on Immigration, New York State (1909). 

Report of United States Immigration Commission (1911-1912). 



13 
LECTURE VIII. THE FACTORY SYSTEM AND FACTORY 
LEGISLATION 

I. Introduction. 

"The Industrial Revolution" is producing modern factory- 
determined civilization. This revolution began in Great 
Britain and is extending throughout the world. 

II. Rise of the Factory System in Great Britain. 

1. British Labor the Century before the Industrial Revolution. 
Feudalism and the Guild system were gone and the Manorial 

system passing. The people were largely agricultural with 
bye-product manufacturing carried on successively by 

a. Household Industry, and 

b. The Domestic System. 

2. The New Machinery and the New Motor Power. 

There was slow, steady and interdependent development of 
machinery for spinning and for weaving. Demand for 
textile raw materials greatly increased enclosures for sheep 
and world cotton culture. Steam power, applied to manu- 
facture and to transportation completed the mechanical revo- 
lution. 

3. The New Factories and Their Workers. 

a. The new factories differed from the old, having new 

machinery, new motor power, and "free" laborers. 
Most earlier factory buildings were ill adapted for 
manufacturing. 

b. Enclosures and the Parish Apprenticeship System fur- 

nished the laborers, many of them children, ill-treated. 

c. The prevalent theory of an exaggerated harmony of 

public and private interest made reform difficult. 

III. Rise of Factory System in the United States. 

Forced by the Napoleonic Wars, the Embargo, and the War 
of 1812, the United States rapidly adopted the new factory 
system. After 1815 a protective tariff system was developed 
to safeguard the young factories. 

"The Golden Age" of small industry (1840 to 1860) was fol- 
lowed by the war which set slave laborers free. 

After the war heavy immigration renewed, transportation was 
rapidly developed, capital concentrated, and great factories 
came with all their labor problems. 

IV. Factory Legislation in Great Britain. 

1. Period of beginnings, 1802-1833. 

The first Factory Act of the world passed in 1802. This act 
was of little importance except as a beginning. The general 
public was ignorant as to factory conditions, and inert, labor 
was not permitted to organize or to vote and, despite graphic 
reports of factory horrors, little reform was obtained during 
a whole generation after the first law. 



14 

2. First Period of Advance— 1833 to 1848. 

The acts from 1833 to 1848 laid a solid foundation for all sub- 
sequent British factory legislation. The following two de- 
cades busied reformers in holding the laws already secured 
and in bettering their enforcement. 

3. Second Period of Advance— 1867 to 1878. 

In 1867 public control over factories and over workshops was 
greatly extended by the Factories Extension Act and the 
Workshop Regulation Act. The Act of 1878 concentrated 
control over both factories and workshops. 

4. Legislation Since 1878. 

British factory legislation since 1878 has been mainly relative 
to particular industries and to strengthening administra- 
tion. The Acts of 1901 and of 1906 codify preceding acts 
and afford the highest protection to women and children and 
the fullest assurance of decent and sanitary factory condi- 
tions ever offered by the law. 

V. Factory Legislation in the United States. 

1. Prior to 1880 there was but little factory legislation, although 
bad factory conditions had developed long before this 

2. Since 1880 there has been an awakening of the people, fruiting 
in State Labor Bureaus, a National Bureau of Labor, and the 
adoption of progressively strict factory laws in most of the 
States. The most advanced States are now in the fore rank of 
the modern world in their public safeguards to the life, limb, 
health and morals of factory operatives and particularly of 
women and children in the factories. 

VI. Conclusion. 

The factory system is the most ingenious, the most compli- 
cated and the most effective producing agency ever in- 
vented. Through their advancing factory legislation States 
have aimed to elide the evils of this new productive agency 
without lessening its benefits. 



LECTURE IX. LABOR ORGANIZATIONS 

I. Introduction. 

Modern labor organizations are a necessary outgrowth of the 
system of production. 

II. History of Modern Labor Organizations. 

1. In Great Britain. 

a. The Period of Beginnings— 1700 to 1825. 

b. The Revolutionary Period— 1825 to 1842. 

c. The Period of Nationalization and Combination— 1842 

to 1880. 

d. The New Unionism— 1880 to the present. 



15 

2. In the United States. 

a. The Period of Beginnings— 1776 to 1840. 

b. The Period of Quiet Growth— 1840 to 1865. 

c. The Period of Aggressive Trade Union Effort— 1865 

to 1878. 
dj The Period of General Organization— 1878 to the 

present. 
e. The Industrial Workers of the World— 1905 to the 

present. 

III. Forms of Organization in the United States. 

1. Local, National and International Trade Unions. 

2. Central Federations. 

3. State Federations. 

4. The American Federation. 

5. Industrial Unions. 

IV. Aims of Labor Organizations. 

1. To secure "benefits." 

2. To raise wages. 

3. To shorten hours. 

4. To lessen child and woman labor. 

5. To better factory conditions. 

6. To enforce collective bargaining. 

7. To educate working men. 

V. Methods of Labor Organizations. 

1. Strikes. 

2. Boycotts. 

3. Union label. 

4. Apprenticeship. 

5. Closed Shop. 

6. Restriction of output. 

7. Arbitration and Conciliation. 

8. Politics and Legislation. 

VI. Conclusion. 

Notwithstanding all the mistakes and the social costs incident 
to its pioneering development, and all the wide differences 
of opinion concerning the methods used by it to gain its 
ends, organized labor is one of the supreme institutions of 
present civilization. 

References for Reading, for Lectures V, VIII and IX: 

Adams and Sumner, Labor Problems (1905). 
*Brooks, John G., American Syndicalism (1913). 
*Carlton, F. T., History and Problems of Organized Labor (1912). 

Commons, J. R., Trade Unionism and Labor Problems (1905). 
♦Commons, J. R., (Ed.) A Documentary History of American In- 
dustrial Society (1910-1911). 

Cooke-Taylor, The Modern Factory System (1891). 

Groat, G. G., Trade Unions and the Law in New York (1905). 
*Groat, G. G., Organized Labor in America (1916). 

Hamilton, L. H., Current Economic Problems (1915) Chapters II 
and XL 

Hollander and Barnett, Trade Unions in the United States (1904). 



16 

Jevons, W. S., The Stale in Relation to Labor (1882). 

Marot, Helen, American Labor Unions (1914). 

Mitchell, John, Organized Labor (1903). 

Taussig, F. W., Wages and Capital (1896). 

Toynbee, A., The Industrial Revolution (18S6). 

Walker, F. A.. The Wage Question (1876). 

Webb, S. and B., i Trade Unionism (1894). 

Annual Reports and Bulletins of the United States Department of 
Labor. 

Annual Reports and Bulletins of New York State Department of 
Labor. 

Industrial Commission Reports (U. S.), Vols. V, VII, VIII, XIV 
and XVII. 



LECTURE X. CAPITAL: A FACTOR IN PRODUCTION 



I. Introduction. 

The lead among productive factors has shifted during social 
evolution. Primitive industry was largely dependent upon 
Nature ; medieval industry was largely dependent upon man ; 
modern industry is largely dependent upon capital. 

II. Definitions of Capital. 

1. Capital may be generally denned as wealth actively or passively 
aiding in increase of utilities. 

2. Distinction is made between : 

a. Free capital and specialized capital. 

b. Fixed capital and circulating capital. 

c. Pure capital and capital goods. 

III. Source of Capital. 

1. Capital results from production and abstinence. 

2. The mass of capital is made greater through : 

a. Improvements in modes of production, increasing total 

wealth production. 

b. Education, developing appreciation of the future. 

c. Effective machinery for saving, e. g., banks and insur- 

ance companies. 

d. Stability of government, effectually guarding life and 

property. 

IV. The Functions of Capital. 

1. Capital makes possible the "round-about" highly productive 
methods, characteristic of the modern industrial system. 

2. Capital is an indispensable factor of advancing civilization, 
being not only a fructifier of industry, but also a prerequisite 
to all progress in arts and sciences. 

V. The Share of Capital. 

1. The distributional share of capital in social product is called 
interest. 



17 

2. There are three leading theories of interest : 

a. Interest is the reward for abstinence and risk. 

b. Interest is due to discounting the value of future goods. 

c. Interest is the marginally tested product of capital as 

a factor of production. 

3. Interest rates. 

a. Contract interest tends to approximate economic in- 

terest. 

b. Usury laws, forbidding interest above specified rates, 

do little good and much harm. 

c. Interest rates tend to be high : 

a. In new lands. 

b. Under unstable or corrupt governments. 

VI. Conclusion. 

Whatever may be the controversies as to the socially most ex- 
pedient system of control over capital, and whatever may be 
the abuses of capital power under any given system, the rich- 
est inheritance of each human generation is its capitalized 
world. The largely increasing capital hastens the complete 
transition to the industrial age of world peace and plenty. 

References for Reading: 

*Bohm-Bawerk, Positive Theory of Capital (1891). 

Bohm-Bawerk, Capital and Interest (1890). 

Clark, J. B., Distribution, Chapters XII and XIII. 
*Fisher, I., The Nature of Capital and Income (1896). 

Giffen, R., Growth of Capital (1889). 
*Hobson, J. A., The Evolution of Modern Capitalism (1913). 

Each of the General Reference Reading Texts, listed on page 2 of this 
syllabus, treats capital. 



LECTURE XI. CORPORATIONS AND THEIR SECURITIES 

I. Introduction. 

The nineteenth century was a century of incorporation. 
The corporation, a legal person, is the present dominant 
business unit. 

II. Historic Development. 

Individual management of business, and partnerships, both 
preceded corporations. The corporation evolved to meet 
the demand of modern business conditions. 

III. Advantages of Corporations. 

1. Long Life. 

2. Limited liability. 

3. Large capital aggregated. 

4. The fact that there are many stockholders democratizes in- 
vestment. 

5. The enormous economic power centered in the greater mod- 
ern corporations both simplifies and compels the extension 
of public control over business. 



18 

IV. Disadvantages of Corporations. 

Control centralized with the few directors, may be used to 
detriment of : 

1. The stockholders generally. 

2. The general public. 

V. Corporate Securities. 

1. Kinds. 

a. Bonds and temporary notes. 

b. Stocks. 

2. Machinery for placing securities. 

a. The stock market. 

b. The banks, trust and investment companies. 

c. Underwriting syndicates. 

VI. Conclusion. 

The corporation is a business machine necessary to the 
modern day. Intelligent reform seeks to eliminate its 
evils without lessening its advantages. 

References for Reading : 

Academy of Political or Social Science, Corporations and the Public 
Welfare (1900). 

Chamberlain, Lawrence, The Principles of Bond Investment (1911). 

Davis, J. P., Corporations; A Study of the Origin and Development 
of Great Business Combinations and of Their Relation to the Authority of 
the State (1905). 

♦Emory, H. C, Speculation on the Stock and Produce Exchanges of 
the United States (1896). 

Frost, T. J., The Incorporation and Organization of Corporations, 
(1908). 

Gerstenberg, Charles W., Materials of Corporation Finance (1915). 

Greene, T. L., Corporation Finance, (1901). 

Lownhaupt, Frederick, Investment Bonds (1908). 

Lyon, W. H., Capitalization (1912). 

Meade, E. S., Trust Finance (1912). 
♦Meade, E. S., Corporation Finance (1912). 
♦Wood, W. A., Modern Business Corporations (1916). 



LECTURE XII. TRUSTS IN THE UNITED STATES: 
ORIGIN AND PRICE EFFECTS 

I. Introduction. 

The year 1898 is the beginning of a new era in United States 
history. Among other notable events of that year was the 
startlingly rapid development of huge industrial combina- 
tions. 

II. Origin and Development of Trusts. 

1. The earliest combinations of several business enterprises into 
one were real Trusts, beginning with the Standard Oil Com- 
pany in 1882. 
These original Trusts unlawful in the early nineties. 



19 

2. The advantages were so great that the combinations continued 
in other forms. The prevailing form soon came to be and is 
to-day a single corporation combining all or nearly all of the 
leading establishments in one line. A trust to-day may be 
defined as a single corporation, combining enough of the 
establishments in one line to give it effective control over 
prices. 

III. Motives for Forming Trusts. 

1. To do away with competition. "Where combination is pos- 
sible, competition is impossible." 

2. Trusts get, in the highest degree, all the advantages of large 
scale production, and also additional advantages which a single 
great plant cannot get. Under these two classes of advantages 
Trusts : 

a. Can specialize in machinery and labor division. 

b. Can carry on auxiliary and subsidiary industries. 

c. Can relatively decrease fixed charges with the increase 

of invested capital. 

d. Can pay high salaries and secure the best men. 

e. Can buy raw materials more cheaply. 

/. Can utilize each plant to its full capacity. 

g. Can economize in advertising and in soliciting business. 

h. Can get control of many leading patents and brands. 

i. Can save cross freights. 

/. Can effectively apply comparative accounting. 

k. Can adjust supply to demand. 

3. Opportunity for large promoter's profits has been an incentive 
in the forming of some Trusts. 

IV. Trusts and Prices. 

1. Trusts are subject to economic law; they can control prices 
only by controlling the output of product. 

2. Trusts actually tend to maintain a level of prices insuring a 
high return to them. 

3. The desire for the maximum net revenue will prevent even a 
complete monopoly from charging exorbitant rates. 

4. The protective tariff enables the Trusts to charge home con- 
sumers higher prices than they charge foreign buyers. 



LECTURE XIII. TRUSTS IN THE UNITED STATES: 
EVILS AND REMEDIES 

Evils of Trusts. 

1. Power over prices may be arbitrarily used to the detriment o£ 
particular rivals or of the home consumer. 

2. Unfair tactics are used against competitors: 

a. Local price discriminations. 

b. Factor's agreements. 

c. Illegal secret transportation rates. 



20 

3. Control over many plants gives a trust great advantages in any 
disagreement with its employees at one plant. 

4. Speculative management of Trusts may defraud the investing 
public. Some of them were largely over-capitalized. 

5. The power and the motives for corrupting public officials are 
very great. 

II. Legal Control of Trusts in the United States. 

1. The common law against monopoly has been interpreted to 
apply to legal monopoly only. A broader interpretation of 
the common law is being given by some American courts 
to-day. 

2. Congress lias no Constitutional power to deal with manufac- 
turing concerns and therefore it cannot directly control Trusts. 

3. The individual States have no power to prevent corporations 
from other States from selling goods within their borders, 
and therefore State anti-Trust laws only drive the Trusts to 
incorporate in those States offering most liberal terms. 

4. Uniform restrictive action by all the States is practically im- 
possible. 

5. Federal legislation : 

a. The Sherman Act of 1890. 

b. The Federal Trade Commission Act of 1914. 

c. The Clayton Act of 1914. 

III. The Remedies for Trust Evils. 

1. Greater Publicity of the Trusts' business affairs would inform 
the investor, the consumer and the potential competitor. 

2. Laws should be passed and enforced stopping price discrimina- 
tions, factor's agreements, and railroad rebates. 

3. Competition in the industrial field would be fairer if no patent 
monopolies were allowed to be held by any corporations. 

4. The repeal of the Tariff rates on Trust made products would 
prevent the unfair saddling of all the fixed charges upon the 
home consumer. 

5. All Trusts should be required to incorporate under a Federal 
charter. If Congress has not at present the power to require 
this, then the Constitution should be amended, granting it 
such power. That power granted, Congress, through taxa- 
tion, denial of the mails, or refusal to grant inter-state Com- 
merce privileges, could much more effectively eliminate the 
evils of Trusts than could the common law or individual 
State action. 

6. The wisest public policy would be to encourage further con- 
centration of control wherever it cheapened the cost of pro- 
duction and attained the further concentration by fair com- 
petitive means. Even complete national monopoly, so achieved, 
should be permitted. If in any industries approximately com- 
plete national monopoly were achieved, effective public control 
would become necessary. Such control would concern itself, 
not only with prices charged by the monopoly, but also with 
prices paid by it for its raw material, with its securities' issues 
and with its treatment of its employees. 



21 



References for Reading : 



Clark, John Bates, The Problem of Monopoly (1904). 

Clark, John Bates, The Control of the Trusts (1905). 

Collier, William M., The Trusts (1900). 

Crowell, John F., Trusts and Competition (1915). 

Dewing, A. S., Corporation Promotions and Reorganisations (1914). 
*Ely, Richard T., Monopolies and Trusts (1900). 

Hamilton, W. H., Current Economic Problems (1915) Ch. VIII. 

Haney, Lewis H., Business Organisation and Combination (1913). 
*Jenks, Jeremiah W., The Trust Problem (1903). 
*Meade, Edward S., Corporation Finance (1912). 

Moody, John, The Truth About the Trusts (1904). 
*Stevens, W. S., Industrial Combinations and Trusts (1913). 

Van Hise, C. R., Concentration and Control (1912). 

Wyman, Bruce, Control of the Market (1911). 

Industrial Commission Reports, Volumes I, II, XIII, XVIII and XIX. 

Outline treatment of Trusts is given in each of the General Reference 
Reading texts named on page 2 of this syllabus. 

LECTURE XIV. THE EVOLUTION AND THE USES OF 
MONEY* 

I. The Philosophy of Exchange. 

Environment and heredity decree that men shall be specialists 
in production, but universalists in consumption. Only 
through exchange is this possible. 

II. Barter. 

The earliest form of exchange, that of goods for goods, gave 
rise to many difficulties, to avoid which men resorted to 
primitive money. 

III. Primitive Money. 

Examples of early forms of money are fish, shells and peltries, 
in the hunting stage; cattle, in the pastoral age; beans, 
tobacco, etc., in the agricultural age, and bronze and iron in 
metal-working days. 

IV. Why Gold and Silver Came to be Universally Used as Money. 

1. They are cognizable, durable, portable, divisible, impressible, 

and homogeneous, and these qualities obviate many of the 
inconveniences of the other kinds of money. 

2. Again, they are the steadiest of all things in value (chiefly be- 

cause they are so durable), the importance of which appears 
when we examine into the uses of money. 

V. The Uses of Money. 

1. First of all, it is used as a Medium of Exchange, in the per- 

formance of which function it is actively productive and 
not mere "dead capital." 

2. Again, it measures values. 

To do this, it must itself have value, and, the steadier this 
value, the better. 

3. It is a standard for deferred payments. 

4. It is the best means of transporting values in space and in 
time. 

* References for Reading of Lectures XIV to XX, inclusive, follow 
Lecture XX. 



22 

VI. Conclusion. 



The clear conclusion is, that because gold and silver best solve 
the difficulties of barter, best obviate the inconvenience of 
primitive moneys, and best serve the uses of money, these 
precious metals have become the base of all civilized money 
systems. 



LECTURE XV. MONEY VALUE AND COINED MONEY 

I. Value of Money. 

1. Being made of a commodity, money is subject to the general 

law of commodity value, which is, that things are valuable 
which are useful and are limited in quantity. 

2. The Quantity Theory of Money is simply the application to 

money of the general economic principles relating to supply 
and demand. 

3. The precious metals are distributed among the nations by an 

adjustment of prices throughout the world. 

II. Coinage. 

1. The metals used in history have been iron, lead, copper, etc. 

2. Early coins were rude in their shapes, weights and markings. 

3. Acceptable coins must be : 

a. Convenient in shape and size. 

b. Difficult to counterfeit. 

c. Difficult to clip or sweat. 

d. Little subject to abrasion. 

e. Historic monuments. 

4. Systems of Coinage. 

a. Government may leave coinage to private parties. 

b. Government may provide merely a system of weights. 

c. Government may use one metal only. 

d. Government may use two or more metals, each equally 

a primary money. 

c. Government may use one metal as primary money and 
others as subsidiary. 



III. Gresham's Law. 



It is a universal law that, if coins of the same denomination, 
but of different market value as bullion, be put into circula- 
tion, the cheaper coin will drive the better out of circulation, 
i. e., bad money drives good money out of circulation, if 
there be enough of it to do the business. 



23 

IV. Outline History of United States Coined Money. 

This Grehsam's Law is again and again illustrated in the His- 
tory of United States Coins, which will be noted in the 
outline. 

1. Hamilton's Dollar — its weight, purity and the ratio of gold to 

silver— 1791. 

2. Market fall of bullion silver drives gold from circulation and 

brings on the coinage acts of 1834-1837. 

3. Gold discovered in California (1849) further cheapens gold 

and drives even silver small coins from circulation, leading 
to the debasing of subsidiary silver (1853). 

4. The "Crime" of 1873 dropped the silver dollar from the coin 

list. 

5. In 1878 the Bland-Allison Act, and in 1890 the Sherman Act 

restored the silver dollar and caused heavy coinage of it. 
Since the repeal of the Sherman Act, in 1893, no silver has 
been purchased for a silver dollar coinage. 

6. A brief statement of the facts as to the number of gold and 

silver and other coins of various denominations. 



LECTURE XVI. PAPER MONEY 

I. Kinds of Paper Money. 

1. Paper money may be issued by the Government or by private 

persons or corporations. Government issue gives great se- 
curity, but lacks elasticity. 

2. All money may be classified as either redemption money, rep- 

resentative money, or inconvertible money. Paper money 
is either representative or inconvertible. Paper money is 
called surrogate, when it has a specific dollar-for-dollar 
reserve in coin; is convertible, when there is a general re- 
serve, maintained for its redemption, and is called incon- 
vertible, when there is no provision for its redemption. 

II. Dangers of Paper Money. 

1. There is great danger of over-issuing paper money, as 

the history of American Continental Currency abundantly 
shows. 

2. There are also great difficulties if anything except the precious 

metals is offered as a reserve for representative paper 
money. 

III. Outline History of Paper Money in the United States. 

The United States throughout its history has issued no strictly 
fiat paper money, but has aimed to keep its government 
paper all convertible. 



24 

1. During the second war with Great Britain government notes, 

bearing interest, issued and fully reedemed later. 

2. During Civil War, a large volume of "green backs" issued, 

declared to be redeemable in coin, but not actually so re- 
deemed from 1861 to 1879, when the Specie Redemption Act 
went into force. Nearly $350,000,000 in these "green backs" 
still in circulation. 

3. Later issues of government money include gold and silver 

certificates and Treasury notes, all surrogate money. 

4. Issues of private banks in U. S. up to 1863 illustrate the dan- 

gers of convertible paper money, as the present National 
Bank notes show one way to safeguard such issue. 

5. A brief summary of the statistics of paper money in the United 

States to-day. 



LECTURE XVII. BIMETALLISM 



I. Meaning of Terms: Bimetallism, Legal Tender, Legal and Market 

Ratios and Free Coinage. 

II. Advantages of Bimetallism. 

1. It prevents so great value-fluctuations of money. 

2. It increases money supply, and thus: 

a. Helps debtors. 

b. Makes business thrive. 

c. Makes it more difficult to corner primary money. 

III. Disadvantages of Bimetallism. 

1. Gresham's Law sure to operate and leave but one metal 

actually in use. 

2. It is questionable whether it is socially expedient to aid debt- 

ors, or to develop business by currency manipulation. A 
much better way to secure equity between debtor and cred- 
itor is furnished by the Tabular Standard. 



LECTURE XVIII. CREDIT AND BANKING 



I. Credit. 



1. Credit is the power to command wealth now in exchange for 

assurance of future return. 

2. The advantages of credit are that : 

a. It utilizes small savings. 

b. It transfers capital to more productive hands. 

c. It furnishes a strong motive toward saving. 

d. It makes possible great enterprises. 



25 

3. The disadvantages of credit are that: 

a. It may promote indebtedness. 

b. It may transfer wealth to less productive hands. 

c. It may overstimulate prices and thus aid in bringing on 

commercial crises. 

II. The Functions of a Bank. 

A bank is an institution for facilitating credit. It has three 
functions : Deposit, discount, and circulation. 

III. Banking Currency. 

1. Bank checks facilitate exchanges and lessen the need for 

money. 

2. Bank Notes are representative money. Regulation of note 

issues by banks is very important. All nations impose some 
restrictions on such issues. The leading restrictions are: 

a. The Maximum Limit. 

b. The Proportional Reserve. 

c. The Bond Deposit, and 

d. The Safety Fund System. 

IV. The Clearing House System. 

LECTURE XIX. OUTLINE HISTORY OF BANKING IN 
THE UNITED STATES 

I. Introduction. 

The banking functions, the necessity for maintaining an ade- 
quate reserve and acceptable means dictated by experience, 
the necessity for protecting depositors and bank note holders 
are all amply illustrated in the National Bank History of 
the United States. 

II. The Earlier National Banks. 

The First and Second National Banks, chartered respectively 
in 1791 and in 1816, worked out many protective features 
later embodied in the National Bank Act of 1863. 

III. Private and State Bank Protective Systems. 

Through private and State banks great losses were suffered 
by the public, especially through the paper money issues of 
these banks. The Suffolk Bank System in New England 
and the Safety Fund System in New York were two dis- 
tinct and successful methods of preventing losses to bank 
note holders. Both systems worked successfully before the 
National Bank Act of 1863 was passed. This Act by high 
taxation, practically made it impossible for other than Na- 
tional banks to issue bank notes. 

IV. Regulations of the National Bank System to 1914. 

Leading regulations of the National Bank System as amended 
and in force at the passing in 1913 of the Federal Reserve 
Act (treated in Lecture XX) controlled: 



26 



1. Organization. 

2. Relations to depositors. 

3. Loans. 

4. Note issue. 

5. Taxation. 

Merits and Defects of the Third National Bank System. 

The leading merits of the Third National Bank System prior 
to the Amendment of the Federal Reserve Act of 1913, were 
its stimuli toward uniformity and towards high-grade bank- 
ing policies and practice in the United States. Critics of 
the system alleged its leading defects to be inelasticity of 
note issue, lack of branch banking, and failure to give com- 
pletest possible security to depositors. 



LECTURE XX. THE FEDERAL RESERVE SYSTEM 

I. The Establishment of the System. 

The Fourth National Bank System of the United States was 
established under the Federal Reserve Act of December 23, 
1913. This Act was amended in August, 1914, and again 
in March, 1915. 

II. Control of the System. 

1. The Federal Reserve Board. 

2. The Federal Advisory Council. 

III. Membership in the System. 

1. Management of Member Banks. 

2. Functions and Powers of Member Banks. 

a. General. 

b. Special : 

(1) Rediscounting. 

(2) Market operations. 

(3) Clearing and collections. 

(4) Control of gold supply. 

(5) Reserves. 

(6) Issue of notes. 

IV. Effects of the System. 

1. The System and the Treasury. 

2. The System and the National Banks. 

3. The System and the State Banks and Trust Companies. 

4. The System as an Improvement on the Third National Bank 

System. 

References for Reading: Money and Banking. 

Bolles, Albert S., Money, Banking and Finance (1903). 
Conant, C. A., A History of Modern Banks of Issue (1896). 
*Conant, Charles A., The Principles of Money and Banking (1905). 
DeKnight, W. F., History of the Currency and Loans of the U. S. 
(1900). 

Fisk, A. K., The Modern Bank (1904). 
Holdsworth, J. T., Money and Banking (1914). 



27 

*Jevons, W. S., Money and the Mechanism of Exchange (1876). 
*Johnson, J. F., Money and Currency (1905). 

Kinley, D., Money (1904). 

Knox, J. J., History of Banking in the U. S. (1900). 

Scott, William A., Money and Banking (1903). 
*Sumner, W. G., History of American Currency (1874). 

Walker, F. A., Money (1878). 
*White, H., Money and Banking (1908). 

Reports of the National Monetary Commission (1910). 

The National Bank Act, as amended, The Federal Reserve Act, and 
Other Laws Relating to National Banks (July 1, 1915), Government Print- 
ing Offce, Washington, D. C. 

For Current Statistics and Facts relating to Money and Banking in 
the United States, see such Government publications as the Annual Statis- 
tical Abstract of the United States and the Annual Reports and Special 
Circulars of the Treasury Department. 

Each of the General Reading Reference texts listed on page 2 of this 
syllabus deals briefly with the subjects of Money and of Banking. 



LECTURE XXL RISING PRICES: PRINCIPLES, FACTS 
AND SUPPLY CAUSES 

I. The Principles of Price Making. 

1. Utility, value and price. 

2. The Quantity Theory of Money. 

II. The Facts of Rising Prices. 

1. In the United States. 

2. In Great Britain. 

3. In other countries. 

III. The Causes of Rising Prices Analyzed. 

1. Causes affecting supply: 

a. Exhausting natural resources. 

b. Middlemen. 

c. Adulteration and package goods. 

d. Cold storage. 

e. Trade Unions. 
/. Tariff. 

g. Trusts. 

h. Transportation. 

LECTURE XXII. RISING PRICES. DEMAND CAUSES, 
EFFECTS AND REMEDIES 

I. The Causes of Rising Prices Analyzed (Continued from Lecture 
XXI). 

2. Causes affecting demand : 

a. Increasing population — immigration. 

b. Speculation. 



28 

c. Extravagance and waste. 

d. Rising Standard of Living. 
c. Increasing gold supply. 

II. The Effects of Rising Prices : 

1. Upon business generally. 

2. Upon wage earners. 

3. Upon receivers of salaries and of fixed incomes. 

4. Upon debtors and creditors. 

5. Upon owning producers — farmers, fishermen, etc. 

6. Upon interest. 

7. Upon crises. 

8. Upon general social reform. 

III. The Remedies Proposed for Rising Prices. 

1. Natural check to further gold production. 

2. Lowering the tariff rates. 

3. Back-to-the-farm movement. 

4. More scientific farming, forestry, etc. 

5. Changing the money medium. 

References for Reading : Rising Prices : 

Clark, Walter E., The Cost of Living (1915). 
Fisher, Irving, The Purchasing Power of Money (1911). 
Fisher, Irving, Why the Dollar Is Shrinking (1914). 
Franklin, Fabian, Cost of Living (1915). 
Nearing, Scott, Reducing the Cost of Living (1914). 
Bradstreet's Journal, current numbers. 

Bulletins of U. S. Bureau of Labor Statistics on Wages and Prices. 
Senate Document No. 349, 61st Cong., U. S. 

Report of the Massachusetts Commission on The Cost of Living 
(1910). 

LECTURE XXIII. PRINCIPLES OF INTERNATIONAL 
TRADE* 

I. Introduction. 

A history of commerce is a history of civilization. . Babylon 
was a centre for caravan ranks ; the art of Athens and of 
Florence developed after they were great commercial cities ; 
the great medieval town leagues for commerce foreshadowed 
the rise of the Third Estate, of representative government, 
of medieval art, and of religious toleration. These are but 
illustrations. 

II. Principles of Trade. 

1. In a voluntary exchange both parties gain. 

2. The greater the difficulty each party would have to produce the 

thing he exchanges for, the greater the gain from exchange. 

3. Since both parties gain by any voluntary exchange, there is 

obvious loss caused by every restriction of freedom to trade. 

4. It may pay a nation to buy from another goods which the 

first nation can produce more cheaply than can the second. 

♦References for Reading for Lectures XXIII, XXIV and XXV 
follow Lecture XXV. 



29 

5. A nation cannot in the long run sell more than it buys, and it 

would be a loss to it if it could do so. 

6. A so-called "favorable" balance of trade may or may not indi- 

cate that a nation is strong. The crude balance of trade i? 
to be carefully distinguished from the refined balance of 
credits, the latter allowing for excess interest and tourist 
expenses, costs of shipping, etc. 

LECTURE XXIV. TARIFF HISTORY OF THE UNITED 
STATES 

I. Introduction. 

The year 1789 began a political but not an economic epoch in 
the history of the United States. 

Tariff came up for early consideration in the first Administra- 
tion, and it has continued to be a fore-rank problem of 
every Administration. 

II. Period of Tariff Beginnings— 1789 to 1816. 

The early tariff acts were intended mainly to be revenue pro- 
ducers and had low ranges of duties. The Berlin and Milan 
Decrees, the Embargo and Non-Intercourse Acts, the War 
of 1812, and the high cost of ocean transport, all supple- 
mented the low tariff duties in producing conditions which 
greatly stimulated the development of new industries. 

III. Period of Aggressive Protectionism — 1816 to 1833. 

Heavy competition, after the close of the Napoleonic Wars, 
threatened to destroy the young industries. To safeguard 
them various Protective Acts were passed, culminating in 
the so-called "Tariff of Abominations" (1828). 

IV. Period of Freer Trade— 1833 to 1860. 

Reaction against the higher tariffs of the "Abomination" period 
gradually reduce the tariff rates approximately to the reven- 
ue point, where they remained from 1846 to 1860. 

V. The War Tariff and Its Related Successors. 

Civil War conditions produced very high and very compre- 
hensive customs duties, justified by revenue needs and 
largely offset by high internal revenue taxes. Most of the 
high internal taxes were abolished soon after the war, but 
the high customs duties were continued, and even increased 
in their essential protective differentials. Several futile 
attempts to reduce them were made in the seventies and the 
eighties. The McKinley Law (1890) was even more protec- 
tive than the War Tariff. After an ineffective reaction, con- 
creted in the Wilson Law (1894), restoration of the high 
duties came in the Dingley Law (1897). No substantial 
abatement of the protection offered by the Dingley Law was 
made in the Payne- Aldrich Law (1909). 



30 

VI. The Underwood-Simmons Act of 1913. 

Important additions to the free list were made and the rates 
on dutiable goods generally were lowered. This was the 
first notable lowering of the United States tariff since the 
Civil War. 

VII. Conclusion. 

Under our Constitutional limitations, customs duties seem an 
essential Federal revenue source. Since 1860 tariffs have 
not been primarily for revenue, but they have been primar- 
ily and highly protective. Even the Reciprocity features, 
notable in the Tariff Acts since 1890, have been "handmaid- 
ens of protection." Speaking in tariff terms, the United 
States still sat in the shadow of the Civil War until October, 
1913. 



LECTURE XXV. FREE TRADE Vs. PROTECTIONISM 

Customs duties may be used by nations for revenue, for polic- 
ing purposes, or for encouragement of commerce and in- 
dustry. They are indirect taxes, having the merits and 
demerits of such taxes. Discussion of customs duties, in 
the light of the trade principles treated in Lecture XXIII, 
may be centered profitably about the free-trade-protection 
controversy. 

II. Free Trade versus Protection. 

1. Common Ground. 

A customs tariff may be advantageous for 

a. Diversifying industries through the development of 

infant industries. 

b. Creating domestic war materials. 

c. Use as an international weapon. 

d. Securing revenue. 

2. Disputed Ground. 

It is disputed that a protective tariff is beneficial, as claimed 
by its advocates, who allege that it : 

a. Makes foreigners pay part of our taxes. 

b. Keeps money and exchange profits at home. 

c. Employs more workmen in America. 

d. Maintains the American standard of wages. 

Its opponents, besides opposing the above claims, allege that a 
protective system 

a. Taxes the many for the benefit of the few. 

b. Begets infants that never grow to maturity. 

c. Is a prolific source of corruption. 

III. Bounties versus Duties. 

Granted that aid is to be given to an industry, a bounty is 
preferable to a duty as the means of granting such aid, for 

1. Duties induce smuggling. 

2. Duties increase the prices of protected articles. 

3. The actual amount of aid given to an industry is more easily 

determined under the Bounty system. 



References for Reading: Trade and Tariff: 
General and Historical — 

Dewey, Davis R., Financial History of the U. S. (1907). 

Hamilton, W. H., Current Economic Problems (1915) Ch. VI. 

Laughlin, J. L. and Willis H. P., Reciprocity (1903). 

Stanwood, Edward, Amcr. Tariff Controversies of the XlXth Centurv 
(1904). 

*Tarbell, I. M., The Tariff in Our Times (1912). 

♦Taussig, F. W., Tariff History of the United States (1914). 

*Whelpley, J. D., The Trade of the World (1913). 

Favoring Protection — 

Byles, J. B., Sophisms of Free Trade (New Edition, 1904). 
Dixwell, Geo. Basil, The Premises of Free Trade Examined (1882). 
Hoyt, Henry M., Protection vs. Free Trade (1888). 
*List, Friedrich, System of National Economy (1841). 
Patten, Simon N., The Economic Basis of Protection (1890). 
Young, John P., Protection and Progress (1900). 

Favoring Free Trade — 

Avebury, Lord, Free Trade (1904). 

Bastable, C. F., Theory of International Trade (1887). 

Bastiat, The Sophisms of Protection (1874). 
*Cairnes, J. E., The Principles of Political Economy (1875). 
*Sumner, William G., Protectionism (1885). 

References for Present Trade Facts — 

Monthly Summary of Foreign Commerce of the United States, U. S. 
Department of Commerce. 

The Statesman's Year Book (annual). 

The Statistical Abstracts, of the United Kingdom and of the United 
States (annuals). 

Tariff Acts of the United States from 1789 to 1909. 

Tariff Board Reports, U. S. (1911-1912). 

Tariff Hearings, Sixtieth Congress (1908-1909). 

U. S. Treasury Decisions (weekly issue). 

Each of the General Reading Reference texts, listed on page 2 of this 
syllabus, outlines the principles of international trade. 



LECTURE XXVI. RAILWAYS IN THE UNITED STATES 

I. Introduction. 

The evolution of man may be outlined in the story of the de- 
velopment of transportation. 

Ocean, lake, river and canal transportation are all of impor- 
tance, but railways play an especially important role in the 
United States. 

II. History of Railways in the United States. 

1. Period of Beginnings — 1826 to 1850. 

The United States fell heir to knowledge from the foreign 
developments of track and of power. 



32 

Early railways in the United States were built largely to 
stimulate new traffic rather than to accommodate traffic 
already existing, as in the Old World. This resulted in 
cheaper cost of construction, keener competition, and lower 
rates than elsewhere. 

2. Period of Rapid Expansion— 1850 to 1890. 

Trunk lines were completed. Enormous public land grants 
were made to induce Western railway building. During this 
period the national mileage rose from 9,021 to 163,597. 

3. Period of Consolidation and Territorial Grouping — 1890 to the 

present. 

Construction in this period has been steady, but not rapid as 
in the preceding period. Territorial grouping of the rail- 
ways and concentration of their control developed during 
this period. 

4. Present Railway System. 

The United States railways include over two-fifths of the rail- 
way mileage of the globe. In 1916 nearly 270,000 miles of 
railways, exclusive of switches and terminals, were in use. 
The railway companies are capitalized at nearly $22,000,- 
000,000, or at about one-eighth of the total wealth of the 
United States. 

They are divided into seven geographical groups. While their 
securities are widely owned, the railways are in the control 
of a very few groups of financiers. 

III. Theory of Railroads. 

1. Railroads Differ from Other Business, for 

a. They are quasi-public. 

b. They are monopolistic in nature. 

c. A large proportion of their annual expenditure is con- 

stant. 

2. The Theory of Rates and Pares. 

a. The cost of service, which applies in most business, is 

not applicable to railways. 

b. The value of service principle is only an application of 

the ability to pay principle. 

3. Rail-way Discriminations. 

a. Classification is a valid and a necessary discrimination, 

but it may be abused. 

b. Local discriminations may be necessary, to allow for 

differences between local and through traffic, and for 
water competition. 

c. Personal discriminations are wholly unjustifiable from 

the social standpoint. 

IV. Railway Regulation in the United States. 

Since railways are huge, fundamental, quasi-public enterprises, 
some form of social control over them is necessary. Two 
general methods of social control are proposed : 



33 

1. Government Ownership and Operation. 

a Advantages: 

1. No discriminations. 

2. Possibly lower rates and fares, since lower Gov- 

ernment interest rate and no profits. 

3. The system would be operated in the interests of 

the whole people. 

b. Disadvantages : 

1. Likelihood of great corruption in place getting 

and in rate making. 

2. Railways the greatest, most complex, and most 

fundamental industry, and there would be great 
difficulty in securing efficiency under Govern- 
ment operation. 

3. The railway income is several times as large as 

the present income of the United States Gov- 
ernment, and therefore Government ownership 
and operation would involve serious fiscal dif- 
ficulties. 

2. Commission Control. 

A continuation of Commission Control, increased powers being 
granted to the Commission, appears to be the wisest policy 
for the United States to-day. 

References for Reading: 

Acworth, W. M., The Elements of Railway Finance (1905). 

Baldwin,' Simeon E., American Railroad Law ( l9 °4)- 

Dunbar, Seymour, History of Travel in America (1915). 
*Hadley, Arthur T., Railroad Transportation (1885). 

Hamilton, W. H., Current Economic Problems (1915) Lh Vll. 
*Tohnson, Emory R., American Railway Transportation (1903). 

Johnson! Emory R., Elements of Transportation (1909). 

Meyer, Hugo Richard, Government Regulation of Railway Kates 

*Noyes, Walter C, American Railroad Rates (1905). 
Parsons, Frank, The Railways, the Trusts, and the People (l^Uo). 
Pratt, Edwin A., American Railways (1903). 
Spearman, Frank H., The Strategy of Great Railroads (1906). 
Thompson, Slason, The Railway Library (annual since 1909) 
Industrial Commission Reports, Volumes IV, IX, XV 11 and XI A. 

Annual Reference Works for Facts- 
Poor's and Moody's Manuals of the Railroads of the United States. 
Interstate Commerce Commission— Annual Reports 
The Board of Jiailroad Commissioners of New York State— Annual 

^Each of the General Reading Reference texts listed on page 2 of this 
syllabus has an outline discussion of the Railroad problem. 



34 

LECTURE XXVII. DISTRIBUTION OF WEALTH 

I. Introduction. 

Functional distribution is the parceling out of the net income 

of industry to the factors of production. 
Modern industrial society has solved its problem of productioa 

of wealth better than it has solved its problem of individual 

distribution of wealth. 

II. Functions, Not Individuals. 

The general theory of distribution is concerned with factors 
of production and not with individuals. An individual may 
function under several factors. 

III. The Static versus the Dynamic State. 

Assuming no changes in quantity, quality or organization of 
the factors of production, under perfectly free competition, 
last increments of any factor of production would receive 
equal returns in all kinds of industry. This would be the 
Static State. 

The real, and highly dynamic, productive world approximates 
far more closely to this static state than first thought might 
indicate. 

IV. Distributive Theories of Wage. 

1. Legal Theory of wage fixed by law. 

2. Wages Fund theory. 

3. Iron Law of wages. 

4. Socialistic Theory. 

5. Productivity Theory. 

This Productivity Theory holds that, under free competition, 
each factor of production tends to get what it has produced, 
marginally tested. This widely accepted Productivity The- 
ory, applicable to each of the factors of production, reaches 
a factual and not an ethical conclusion. It seeks to deter- 
mine functional distribution, leaving society under the gen- 
eral dictates of social expediency, to determine individual 
distribution of wealth. 

V. The notably unequal individual distribution of wealth and of incomes 

actually persisting in modern society is the basic premise of 
all propaganda for extended social control of economic ac- 
tivity. 

References for Reading 

*Clark, J. B., Distribution (1900). 

Hobson, J. A., Economics of Distribution (1900). 

King, W. I., The Wealth and Income of the People of the United 
States (1915). 

Smart, W., Distribution of Income (1899). 

Each of the General Reading Reference texts listed on page 2 of this 
syllabus treats Distribution. 



35 
LECTURE XXVIII. RENT OF LAND 

I. Introduction. 

Broadly defined, rent is the return to any durable capital good. 
It is here narrowed to ground rent. 

II. Law of Diminishing Returns from Land. 

1. Statement of the Lazv. 

As capital and labor is increasingly applied to given land, a 
point is reached beyond which increase of returns is less 
than proportional to increase of capital and labor applied. 

2. The Law may be illustrated, hypothetically, and from actual 

experiment. 

3. The Law is not to be confused with a statement of mere soil 

exhaustion. 

4. The Law applies to all uses of land. 

5. The Law may be generalized to apply to any factor of industry, 

increasing less rapidly than the other factors. 

III. Ricardian Rent Formula. 

1. Statement of Formula. 

Rent is the surplus product obtained by applying given capital 
and labor to given land, over the product obtained by apply- 
ing the same capital and labor to marginal land. 

2. Criticism. 

"No-Rent Land" is assumed. 

3. Economic Rent is the Ricardian surplus. It is due to the 

better location and the richer resources of rent-producing 
land. Under free competition Contract Rent approximates 
Economic Rent. 

IV. Relation of Rent to Price. 

Higher prices cause higher rents, rather than the commonly 
accepted reverse. 

V. Relation of Rent to Wages and to Interest. 

Since population and capital tend to increase more rapidly than 
land put to economic use tends to increase, rent tends to 
rise. This fact, that land as a productive factor is the 
largest beneficiary of Social Progress, is a basic proposition 
of the "Single Tax" theory. This theory asserts that the 
State should receive the increasing share apportioned to land 
by the process of functional distribution. 

References for Reading 

Clark, J. B., Distribution, Chaps. XXII and XXIII (1900). 
♦Johnson, A. S., Rent in Modern Economic Theory (1900). 
Marshall, A., Principles, Book V. 

Each of the General Reading Reference texts listed on page 2 of this 
syllabus treats Rent. 



36 

LECTURE XXIX. SOCIALISM 

I. Philosophy of Socialism. 

Human society evolves under stimulus of its economic forms 
of production. The class struggle persists — slave vs. master, 
serf vs. lord, wage earner vs. capitalist. 

Utopian dream systems of speculative Socialism yield to mod- 
ern scientific Socialism. The efforts of sporadic Utopian 
dreamers give way to the solidarity of a persistent labor 
class movement, whose goal is perfection of human oppor- 
tunity through economic freedom. 

II. Socialism's Criticisms of Present Economic Society. 

1. Socialism teaches that better life for all is coming through 

community ownership and operation of all the socialized 
means of production. 

2. Socialism claims that present society fails of its best in : 

a. Production. 

Anarchy in the producing world except where monop- 
olies control. 

b. Exchange. 

Great waste in speculation, advertising, sale and distri- 
bution of goods. 

Surplus theory of value should replace other value 
theories. 

c. Distribution. 

The community should parcel out the whole social 
product. The exact manner and method of this dis- 
tribution is a matter of disagreement among Social- 
ists, though they agree : 

1. All able-bodied persons within specified age lim- 

its should labor. 

2. There should be increased gratuitous public serv- 

ices, such as free medical treatment, free legal 
services, and extended free educational oppor- 
tunities. 

3. No receipt of rent or of interest by individuals 

should be permitted. 

d. Consumption. 

There should be individual enjoyment of earned con- 
sumption goods, with higher and better developed 
tastes to satisfy and with more leisure to enjoy. 

IV. Popular Misunderstanding of Socialism. 

Socialism, as such, is not : 

1. Identical with Anarchism. 

2. Identical with Communism. 

3. Hostile to Religion. 

4. Hostile to family fidelity. 

V. Criticism of Socialism. 

1. Regimentation of industry would be necessary. This would 
bring hard problems of distribution of labor and determina- 
tion of industrial incomes. 



37 

2 "Class" emphasis is narrowing and embittering. 

3 The "party discipline" is questionable. 

4. The surplus value theory is faulty. 

5. Socialism makes persistent assumption that its way is the only 

way to cure the ills of modern life. 

References for Reading 

Arnold-Foster H. O., English Socialism of To -Day (1908). 
Barber, J Ellis Socialism; An Examination of Its Doctrines, Policy, 
Aims and Practical Proposals (1908). 

*Cross Ira B., The Essentials of Socialism (1912) _ 
De Tunzelmann, G. W., The Superstition Called Socialism (1911). 
Guyot, Yves, Socialistic Fallacies (1910). 

Hamilton, W. H., Current Economic Proble^ (19^) Ch. XIV. 
Hillquit, H. M., Socialism m the United States (1903 . 
*Hillquit Morris, Socialism in Theory and Practice (1909). 
♦Hunter, R., Socialists at Work (1908) 
*Kirkup, T., History of Socialism (1913). _ 
Mallock, A Critical Examination of Socialism 1907). 
*Marx, Karl, Capital (Translation, Kerr & Co. 1906) 
Marx K. and Engels, F., Communist Manifesto (1848) 
Orth S P., Socialism and Democracy in Europe (}9U). 
Peizorto J. The French Revolution and .Modern Socialism (1901). 
Rauschenbusch, Walter, CWMy and the Social Crisis (1908). 
Scudder, Vida D., Socialism and Character (1912). 
Skelton, O. D., Socialism~A Critical Analysis (1911). 
Walling, William E., Socialism As It Is (191^). , 
Wallinl William E The Larger Aspects of Socialism (1913). 
Wells H. G., New Worlds for Old (1908). 

Each of the General Reading Reference texts listed on page 2 of this 
syllabus outlines Socialism. 

LECTURE XXX. TAXATION 

I. Introduction, 

Taxation has played a vital part in history, and is to-day of 
fundamental world importance. It affects every man, 
woman and child. In the United States it consumes nearly 
one-twelfth of the aggregate income of the population. 

Government is necessary and its expenses must be met Rev- 
enue mav be obtained from sales, from fines, from fees, irom 
spedaT assessments, and from taxation. A tax is a general 
levy to be used for a general purpose. 

II. Taxation Ideals. 

Taxes might be levied according to 

1. Equality. . 

This is unjust and impossible. 

2 ' Thisls tapotibt to measure and would overburden the poo, 

3. Ability to pay. , 

This is just and practicable. 



38 

III. Rules of Acceptable Taxation Policy. 

1. Tax nothing which can and will run away. 

2. Tax nothing which can hide. 

3. Taxes should be 

o. Definite in amount, time and manner of payment. 

b. Levied and collected in a way convenient to payers. 

c. Levied at lowest possible cost of collection. 

d. Levied so as to encourage and not to discourage indus- 

try, integrity and intelligence. 

IV. Kinds of Taxes. 

1. Direct and Indirect. 

a. Direct taxes are borne by the original payer. Examples 

are Poll and Inheritance Taxes. 

b. Indirect Taxes are shifted by the original payer. A 

leading example is the Customs Duty, which is ordi- 
narily paid by the final consumer, in the form of 
higher price. Such taxes are objectionable, for the 
people do not know when they pay them, their collec- 
tion is costly, and they are oppressive to the poor, 
particularly when specific. 

c. In the United States direct taxes are favorites with the 

States, and indirect with the nation. 

2. General Property Tax. 

The "American System." Although this form of tax has 
been abandoned by the more enlightened nations of Europe, 
and has been condemned uniformly by the many tax in- 
vestigating commissions of the United States, it is still the 
most important source of revenue in the United States. 
The attempts to levy on personal property are costly, and 
put a premium on dishonesty. The practical failure to 
reach personalty makes the levy unjust. 

3. Land Tax. 

a. A land tax is readily and inexpensively levied — land 

cannot hide or run away. A land tax cannot be 
shifted. 

b. The Single Tax on Land has all the advantages of the 

land tax, but it has defects, since it would yield 
the Government an inelastic income, it would deprive 
the Government of policing power through taxation, 
and, if inaugurated by practical confiscation of land, 
it would be unjust. 

4. Stamp Taxes. 

Stamps may be used as mere vouchers, as in the excise stamps, 
or they may be required to legalize the drawing of deeds, 
the sale of patent medicines, etc., as in the stamp tax of the 
United States during the Spanish-American War. Require- 
ment of stamps is annoying to business men. In the United 
States it is perhaps wise to reserve the stamp tax for emer- 
gency needs of revenue. 



39 

5. Income Taxes. 

Theoretically the progressive income tax, with a reasonable 
minimum of subsistence income exempt form any tax pay- 
ment, is one of the most defensible of all taxes. Practically, 
it may be a source of perjury rather than of revenue, and 
since many will evade it, in actual practice it becomes 
unjust. The lower the rates and the more effective the 
administrative system the less these practical difficulties 
will be. 

6. Inheritance Taxes. 

Progressive inheritance taxes are socially justifiable, and are 
growing in favor in democratic countries. They may be 
justified as a levy to counterbalance other taxes evaded by 
estates, or on the ground that the bequest receiver's ability 
to pay has greatly increased, or on the broad social ground 
that the community is the silent partner in every great 
business enterprise, and that it is entitled to some reasonable 
share in the profits. 

7. Corporation Taxes. 

There is a developing tendency in the United States to tax 
corporations upon the value of their franchises. The move- 
ment favors the taxing of corporations locally on their real 
estate, and then the taxing for the State of the difference 
between the market value of the corporations' securities 
and the value of realty owned by them, or taxing of gross 
or of net earnings. Such taxes satisfy the ability to pay 
criterion and the rules for an acceptable taxation policy. 



V. Conclusion. 



In summary, taxes upon land, upon inheritances and upon cor- 
porations seem best adapted to United States conditions. 

Industrial democracy is adapting the revenue systems to the 
new conditions, for which it is so largely responsible, and 
is striving to eliminate old injustices. In the contests to be 
waged, taxation is a powerful weapon in the hands of this 
industrial democracy. 



References for Reading: 

*Adams, H. C, The Science of Finance (1898). 

*Cohn, Gustav, The Science of Finance, Book II (translated 1895). 

Cooley, Thomas M., A Treatise on the Law of Taxation (3rd Ed. 
1903). 

Fillebrown, C. B., Taxation (1914). 

George, Henry, Progress and Poverty (1879). 

Goodnow, F. J., Cases on Taxation (1905). 

Hamilton, W. H., Current Economic Problems (1915) Ch. XIII. 
*Holt, Henry, Talks on Taxation (1901). 

Plehn, C. C, Introduction to Public Finance (1909). 

Plehn, Carl C, Government Finance in the United States (1915). 

Seligman, E. R. A., Essays in Taxation (8th Ed., 1913). 

Wells, Davis H., The Theory and Practice of Taxation (1900). 

West, Max, The Inheritance Tax (1893). 



40 

Industrial Commission Report, Volume XI, Taxation in Various 
States and in Canada. 

Proceedings of the National Tax Association — Annual, beginning 
1907. 

Reports of U. S. Bureau of Corporations on Taxation (1909 to 1916). 

Report of the Joint Legislative Committee on Taxation, New York 
(1916). 

Special Report of U. S. Census Office — Wealth, Debt and Taxation 
(1914). 



LECTURE XXXI. THE DEVELOPMENT OF ECONOMIC 
THOUGHT 



I. Ancient. 



The Greeks and Romans, with economic conditions so different 
from those of the present day, left little economic thought 
of more than merely historic value. 



II. Medieval. 



The Middle Ages focused their economic writings closely to 
the two problems of interest and of government fixation 
of prices. 



III. Mercantilism. 



As Feudalism yielded before nationalism, economic thought 
adopted the nationalistic colors. Mercantilism was founded 
on the ideas that nations can grow strong only at the 
expense of their rivals, and that money is the most im- 
portant form of wealth. The mercantilist writer favored 
legislation to increase the balance of trade of his nation, 
to foster commerce and industry, to lure in food supplies, 
raw materials, skilled laborers and supplies of the precious 
metals, to exclude manufactures of other nations, and to 
prevent export of foods, raw materials and the precious 
metals. 

IV. Physiocracy. 

The Physiocratic school in France over-emphasized the im- 
portance of agriculture, believed that surplus income came 
from land only, argued that taxes should be levied directly 
upon the land and upon the land only, and that other vex- 
atious taxes, shackling industry and commerce, should be 
removed. 

V. Adam Smith and His Followers. 

Adam Smith, who published his famous Wealth of Nations in 
1776, is oftentime called the father of modern economics. 
He taught the importance of labor, the benefits of free com- 
petition, the dangers of over-emphasizing either agriculture, 
manufacture or commerce. His teachings, untempered by 
his historic sense, were narrowed into dogmatic formula by 
his followers, asserting universal truths, the economic man 
and the harmony of public and private interests. 



41 

VI. The Historic and the Socialistic Schools. 

The historic school denies the validity of the dogmatic social 
generalizations of Adam Smith's followers and teaches evo- 
lution and the relativity of all knowledge. 

The Socialistic school rejects the idea of harmony between 
public and private interests and advocates far-reaching 
extension of governmental activities. 

VII. Present Day Economic Thought. 

Economic thought to-day emphasizes the study of distribution 
of wealth rather than of its production, so much emphasized 
by Adam Smith and his followers. Present day thought, 
acknowledging its large debt both to historical and Social- 
istic thinkers, still holds as against the extreme historical 
school men that there are some valid, important general- 
izations, and as against the extreme Socialists that there is 
large harmony between private and public interests, and 
that each case for extension of government control in busi- 
ness must be proven. 

References for Reading: 

Cossa, L., Introduction to the Study of Political Economy (1893). 

Ely, R. T., Outlines of Economics (1909), Ch. XXXVI. 
*Haney, L. H., History of Economic Thought (1910). 

Ingram, J. K., History of Political Economy (1888). 
♦Seligman, E. R. A., Principles of Economics (1914), Ch. VIII. 



LIBRARY OF CONGRESS 



013 478 672 3 • 



